H.R. 2357 would make it easier for businesses to file registration statements with the Securities and Exchange Commission (SEC) in order to sell securities to the public. Specifically, the bill would remove certain limitations on the use of a simplified form for filing a registration statement.
Based on information from the SEC, CBO estimates that implementing H.R. 2357 would cost about $1 million in fiscal year 2016 to complete a rulemaking process as required under the bill. Under current law the SEC is authorized to collect fees sufficient to offset its appropriation each year; therefore, we estimate that the net cost to the SEC would be negligible, assuming appropriation action consistent with that authority. CBO estimates that enacting H.R. 2357 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply.
H.R. 2357 contains no intergovernmental mandates as defined in the Unfunded Mandates Reform Act (UMRA) and would not affect the budgets of state, local, or tribal governments.
If the SEC increases fees to offset the costs associated with implementing the bill, H.R. 2357 would increase the cost of an existing mandate on private entities required to pay those fees. Based on information from the SEC, CBO estimates that the incremental cost of the mandate would amount to about $1 million in 2016 and would fall well below the annual threshold for private-sector mandates established in UMRA ($154 million in 2015, adjusted annually for inflation).